Group 4
Write the first paragraph of your page here. Service Business - Hamza Shahzad A service business sells a service to the public.It does not make or sell a product as its main source of revenue. Service businesses provide intangible products, such as car wash, landscaping, barber, spa,etc. Service business has certain advantages over traditional merchandising businesses. Service business does not hold inventory or any product. This takes away a lot of issues that result with having products.There is no issue with shipping, returns, packaging, etc. Rather businesses can focus on improving customer service and how they can provide a better service to customers.Service business is cheaper to start-up as it does not require any major equipment. For example you can start a lawn care service with just a lawn mower and grow as your business demand increases. Although service business have certain advantages, there is also some cons. A service business is harder to value compared to a manufacturing or retail business. These businesses have inventory and equipment including other hard assets that have value.Although service business are easy to start up due to lack of inventory and minimal equipment it can be hard to value such businesses.Due to this it is difficult to project sales and other financial documents. Some forms of service business include Barber, car wash, restaurant, lawn care, babysitter, dog walker, spa, homework help/tutoring, daycare, transportation service, cleaning services, etc. Merchandising Business - Aliyan Bhatti A merchandising business, sometimes called merchandisers is a business were the business purchases products and goods for the reason of selling them again to customers who are willing to pay twice (sometimes more) as much for the same product the business bought. How a merchandising business works is basically a merchandising business would purchases a product for a certain price and then sell the product for 2x or 3x. The business would be making a lot of profit by doing so and that would be how they pay for their bills, employees and their own salary. How the inventory cycle works is that: Step 1: there is inventory at the beginning of the accounting period Step 2: merchandise is sold and move out more or less continually during the accounting period Step 3: merchandise is replaced by the purchase of new stock from time to time Step 4: the inventory at the end of the accounting period is more or less the same as the beginning ''' '''How business keep track of their inventory is the periodic inventory system. The periodic inventory system is a system in which cost of inventory sold is only determined at the end of the fiscal period. Businesses that use this system does not keep up to date of the inventory records and don't calculate the cost of goods sold between statements dates. If this system is used, taking a physical inventory is required. Examples of merchandising business are walmart, kmart, costco, Fresh-co, supermarket, canadian tire, superstore, sears, zellers, target and the list goes on and on. Manufacturing Business written by : Guneetpal Bawa A manufacturing business is any business that uses components, parts or raw materials to make a finished good. These finished goods can be sold to directly to consumers for example clothes, rulers, light bulbs etc. Sometimes a manufacturing business sell goods to other manufacturing businesses for them to assemble a new product such as various car parts. Most manufacturing businesses in today's world are normally comprised of machines, robots, computers and humans that all work in a specific manner to create a product. This can increase job loss and affect the country's economy. Non-Profit Organization Conrad Non-profit organization A non-profit organization is a club or social group that is purely volunteer based and makes no money for employees or employers. These organisations can operate under religious, scientific, research or educational purposes. Some examples of this business model are the catholic church, unicef, charity organization. A lot of non-profit organizations have a highly educated board of trustees to help when making financial decisions. It can be helpful for trustees to participate in continuing education and workshops to stay up to date on current trends. Since non-profit organizations do not directly make profit on this venture they rely heavily on donations. There are several sources for donation some of which include government grants, sponsorship and independent donors